TD SYNNEX Corporation SNX is gaining from rising demand for AI infrastructure, with its Hyve Solutions business emerging as an important growth driver. Hyve provides data center infrastructure that supports advanced computing workloads. As businesses expand their AI capabilities, demand for such systems could create further opportunities for the company.
In the third quarter of fiscal 2026, Hyve's gross billings surged 117% year over year to $7 billion. Manufacturing growth exceeded 130%, while supply-chain services increased more than 90%. These figures point to strong demand for Hyve's infrastructure offerings as customers invest in the computing capacity needed for AI applications.
Hyve's gross billings growth was mainly supported by expanding volume programs with existing hyperscale cloud customers aggressively building out their AI and data center footprints. The segment benefited from the ongoing program scale-ups and front-loading of three newly acquired hyperscaler clients in the third quarter. Hyve now works with all five top U.S.-based hyperscalers.
Hyve's momentum also supported TD SYNNEX's strong overall performance. The company reported quarterly revenues of $21.6 billion, up 37.7% year over year. Non-GAAP gross billings increased 40% to $31.8 billion, while non-GAAP earnings per share climbed 58.7% to $5.68. These results show that demand across its technology distribution and infrastructure businesses remains strong.
Continued investment in AI data centers could support Hyve's growth. The company’s new US-based hyperscaler client additions and landmark partnerships, such as a major enterprise AI factory deal deploying NVIDIA's advanced architecture through the channel, solidify Hyve's position in accelerated cloud infrastructure.
INGM and ARW: How Do Rivals Fare Against SNX?
Ingram Micro Holding Corporation INGM competes with TD SYNNEX through its Xvantage digital platform, which uses automation and AI tools to simplify technology purchasing and improve customer engagement. Traditionally, IT distribution relied on complex, manual workflows for software and hardware procurement. Xvantage disrupts this by integrating advanced automation and AI-driven tools that streamline operations, minimize human error and accelerate transactions.
In the second quarter of fiscal 2026, Ingram Micro's net sales increased 13.6% year over year to $14.5 billion, while its non-GAAP earnings per share rose 34.4% to 82 cents. Its digital investments could help strengthen customer relationships and support further growth.
Arrow Electronics, Inc. ARW is another competitor, serving technology vendors and business customers through its Global Components and Enterprise Computing Solutions businesses.
In the second quarter of 2026, sales rose 31.8% year over year to approximately $10 billion. Global Components sales increased 39%, while Enterprise Computing Solutions sales grew 14%. Arrow Electronics' broad technology portfolio and growing demand for AI-related products support its competitive position.
TD SYNNEX’s Price Performance, Valuation & Estimates
SNX shares have soared 65.2% year to date, while the Zacks Computers – IT Services industry has fallen 11.3%.
TD SYNNEX YTD Price Return Performance
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From a valuation standpoint, SNX trades at a forward price-to-earnings ratio of 10.04, significantly below the industry’s average of 19.05.
TD SYNNEX Forward 12-Month P/S Ratio
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The Zacks Consensus Estimate for TD SYNNEX’s fiscal 2026 and 2027 earnings implies a year-over-year increase of 60.8% and 18.6%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
TD SYNNEX currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).